Meta Adjusts Capital Spending Forecast Amid Market Reactions
Meta Platforms (NASDAQ: META) has raised its 2026 capital spending forecast to a range of $125 billion to $145 billion, reflecting an increase of $10 billion at both ends. This announcement comes as Meta prepares to release its second-quarter results on July 29, after reporting $19.8 billion in capital expenditures in Q1 2026. Currently, Meta’s stock trades approximately 24% below its 52-week high of $796.25, having recently dropped 3.4% amidst a broader sell-off in major tech stocks.
CEO Mark Zuckerberg emphasized the importance of compute in product innovation, highlighting the rollout of custom chips developed with Broadcom. Despite the increased spending, Meta generated $12.4 billion in free cash flow in Q1 and is maintaining its full-year expense outlook of $162 billion to $169 billion. Attention will focus on revenue growth, potential capital spending changes, and the impact of AI investments on advertising results in the upcoming earnings report.
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